Favelle Favco Berhad (Favco) said it does not expect a lawsuit seeking USD25 million in damages over a crane incident in New York to have a material financial or operational impact on the group, citing strong grounds to defend the claim.
The company said it had received further queries from Bursa Malaysia Securities Berhad regarding a Summons with Notice filed by Justin Santiago at the Supreme Court of the State of New York.
The legal action names Favco’s wholly-owned US subsidiary, Favelle Favco Cranes (USA) Inc (FFC USA), Favco, and several other parties as defendants. The plaintiff is seeking USD25 million in damages, together with statutory interest, costs and disbursements, arising from alleged injuries, harm and losses linked to a crane incident in New York in July 2023.
Favco reiterated that FFC USA’s involvement was limited to supplying the crane involved in the incident. Neither Favco nor FFC USA owned, operated or maintained the crane at the time of the incident.
The group also noted that an official independent investigation report did not attribute the incident to any failure by the crane manufacturer.
“Based on the information presently available, the company believes it has strong grounds to defend the claims against Favco and FFC USA,” the company said in its response to Bursa Malaysia.
Favco added that it has notified its insurer regarding the claim, with the insurer currently in the process of appointing legal counsel in the United States to defend the proceedings.
At this preliminary stage, the company said it was unable to reliably estimate any potential liability arising from the summons.
However, Favco maintained that it does not expect the legal proceedings to have any significant impact on its operations or financial position, given the circumstances surrounding the case and its planned defence strategy.
